TVA to pay $10 million penalty in clean air settlement

The Tennessee Valley Authority board is phasing out 300 to 400 jobs at its oldest coal-fired plants and will pay a $10 million penalty in a clean air agreement with the Environmental Protection Agency, several states and environmental groups. Coal-unit shutdowns will start in 2012. The shutdowns include six units at Widows Creek Fossil Plant in North Alabama, two units at John Sevier Fossil Plant in East Tennessee, and all ten units at Johnsonville Fossil Plant in Middle Tennessee.

Alabama, one of the states suing TVA, will receive more than $11 million from the settlement. Money from the agreement will go toward reducing air pollution and improving energy efficiency. The settlement also will mean $500,000 in fine payments to the state by TVA. The operations that account for about 16 percent of TVA’s coal-fired capacity will be shuttered as part of the settlement. According to TVA executives, efforts will be made to provide other jobs, but they say TVA cannot guarantee that every displaced employee will be offered a job at the same location. According to Alabama Attorney General Luther Strange, the agreement resolves concerns about TVA’s older coal plants.